As Indonesia seems to have internally stabilised to a certain degree, its foreign policies and conduct of international relations have become a subject of global as well as regional interest. How does Indonesia view its neighbours Malaysia and Singapore as well as major powers like the United States, China and Australia? Dr Dewi Fortuna Anwar shares her observations and insights on this.

Q: Because of its colonial past and bitterly-fought war for independence, Indonesia was well-known for its fierce anti-Western nationalism. Will, or will not, Indonesian nationalism articulated in the past pose a mental obstacle among young Indonesians to cope with the challenges of globalisation which include the need to acquire skills in Western languages, management styles and diplomacy?

A: As mentioned earlier, Indonesians have a strong sense of nationalism. In foreign policy this has manifested itself in the 'free and active foreign policy' and Indonesia's refusal to be party to any defence alliances throughout the Cold War period. Indonesia is particularly sensitive to the presence and role of foreign military powers in its areas of jurisdiction.

Yet at the same time Indonesia has always been very open to the outside world. Indonesia has always been at the crossroad of cultures and civilisations and has always been willing to adopt new ways and thinking, adapting them to local needs and circumstances. The existence of freedom of information and freedom of movement have enabled Indonesians to access information from the outside world without any hindrance, except technological limitations, and many young people have received overseas education and training, mostly in Western countries. The fact that Indonesia has long been an open and market-oriented economy, and that it is currently embracing democratisation with great enthusiasm are clear manifestations of its adaptability to global changes.

Unlike in some other countries in the region, debates about universal values and local values, such as in discussing human rights, have been laid to rest in Indonesia. Indonesians accept that certain basic principles, such as human rights and democracy, are universal in nature and that one cannot hide behind nationalism or national sovereignty as an excuse to violate these principles.

Q: Despite the impression that there is an upsurge of anti-American sentiment among Muslims in Indonesia after the wars in Afganistan and Iraq, President George W Bush was still able to visit Indonesia safely last year. What are the relations now between Indonesia and the United States? Are there any arrangements for defence and security cooperation?

A: Indonesia has made it very clear that it is strongly critical of the US invasion of Afghanistan and Iraq or its policy towards the Palestinians and Israel. Yet, Indonesia's relations with the US are much more broad-based and certainly not defined by the issues in the Middle East. The US is an indispensable global power, the largest market for exports and a major donor country. It also provides a lot of educational and technical assistance to Indonesia. The American political system provides an inspiration for Indonesia's own democratisation drive.

Indonesia is opposed to a formal defence alliance, but it certainly hopes that the US will assist Indonesia to improve the professionalism and capacity of the military and the police. Indonesia hopes that the Congressional ban on US sale of military technology to Indonesia will soon be lifted.

Q: The first Indonesian president Sukarno allied himself, to a certain degree, with communist China for an ideological purpose, but after that, the anti-communist Suharto regime was suspicious of China both ideologically and as an ethno-nationalist power in the region. What are the relations between Indonesia and China now?

A: Indonesia has normalised diplomatic relations with China since 1990, after being frozen from 1966. Today, relations between Jakarta and Beijing, (is like) between Asean and China as a whole. China is regarded as an important economic partner, a large market for Indonesia's exports and an increasingly important source of foreign investment. Political and security cooperation between China and Asean countries, including Indonesia, are also on the rise.

Q: Because of its geographical distance, Australia has always been concerned with development in Indonesia. What are the relations between Indonesia and Australia now? Are there any arrangements for defence and security cooperation?

A: In the past couple of years, relations between Indonesia and Australia have improved considerably, leaving behind the difficult memories of the tumultuous post-referendum on East Timor. Jakarta and Canberra are working closely together on counter-terrorism and in dealing with people smuggling.

The considerable successes of the Indonesian police in solving the Bali bombing and in arresting most of the perpetrators owes a great deal to the technical assistance provided by Australia. It is unlikely that the 1995 bilateral security agreement between Indonesia and Australia will be revived, but the two countries are cooperating closely on various security issues. Australia has supported the establishment of a counter terrorism centre in Indonesia.

Q: What about Indonesia's relationship with Malaysia and Singapore?

A: Malaysia and Singapore are Indonesia's closest neighbours and fellow members of Asean, so these two countries are of special importance to Indonesia. Nevertheless, because these countries are such close neighbours, there are numerous frictions that sometimes can strain relations. With Malaysia the issue of Indonesia's migrant labour has sometimes led to ill-feelings, such as when Malaysia deported large numbers of Indonesian illegal workers, or when Indonesian workers are ill- treated by their employers.

With Singapore, the most contentious issue is Singapore's reluctance to open up its bilateral trade figure in Indonesia, fueling suspicions of rampant smuggling condoned by Singapore, and its reluctance to sign an extradition (treaty) with Indonesia, allowing Indonesian economic criminals to seek refuge in Singapore. These have led to questions being raised in public about Singapore's good will towards Indonesia.

Q: Where is former president BJ Habibie now? Does he still have any power or influence behind the scene somewhere?

A: Former president Habibie mostly lives in Germany as his wife needs constant treatment for her lung problem there and in several other European hospitals. Pak Habibie is well respected in Indonesia and still has a large following, but he has deliberately avoided being directly involved in politics. After his presidency Pak Habibie founded The Habibie Center, a think tank devoted to the promotion of democracy and human rights.

Indonesia in democratic transition (Part 1)

Indonesia in democratic transition (Part 2)

JAMES WONG WING ON is chief analyst of Strategic Analysis Malaysia.